Thanks for the link, Bryko!
The title of the article says I'd be put off by Rio. I'm still excited for that movie, and the concept of parrots in Brazil interests me more than Newts in ....West Virginia? (As the woman's shirt says, but that doesn't mean it's where it's set).
I too have an issue with the article's title. What is with Pixar elitists taking potshots at rival studios?

It is common knowledge (among the film and animation community) that Pixar graciously acquiesced to Blue Sky when they heard Rio was in production. Blue Sky did not intentionally copy Pixar (unlike Dreamworks in the early '00s), it was a divine coincidence much like Animal Logic's Happy Feet and Sony Animation's Surf's Up.
I for one, think Rio would be a more exciting and inspiring setting than West Virginia (and Rio's story will in fact open in Minnesota, so there's a bit of North America for you), but now that I've seen these new concept art, I'm beginning to think that the characters in Newt would be much more interesting.
So while I'm on the topic, lemme say a few thing about the characters. I love them. The female snake is my favourite, but the owl is pretty awesome, too. The cast concept is also pretty interesting, what's with the marching band? It's like Pixar had a peek in my brain and found out what kind of animals I like. And of course, I'm a huge, huge, HUGE fan of Jason Deamer after I saw his works in 'The Art of Wall-E'.
Having said that, though, I agree with the author on this:
A real shame, because it’s been proved a few times over now that Pixar and their rivals can release looky-likey films with no absolutely detriment to the Pixar picture’s success or credibility.
I really can't fathom why Pixar didn't just release Newt the next year or maybe a few months after Rio, once the hype for Rio has died down. They've done it before with Dreamworks (but maybe because it was due to the intense enmity, whereas Blue Sky is more of like a 'friendly rival' they can negotiate with).
Did Pixar back out because they wanted to give Blue Sky a chance like a gentleman? Or were they financially-motivated, and that they were worried about their 'box-office success', which is surprisingly insecure and selfish for a studio like Pixar?
Pixar has always listened to its fans (well, not always, but there's a nice PR relationship with all the great autographs and Unkrich's Tweets). There is an overwhelming desire for Newt to be continued. Why is Pixar scared of Blue Sky? If it has a promising film, it has nothing to be afraid of. If, however, they felt that the story wasn't working out, I'll accept that, and I won't pressure them into it.
We have to learn to let go. Woody learnt that last year. I've moved on, and I firmly believe Rio will be an honourable substitute for Newt, and that it will do the movie it replaced justice. If Pixar so decides to release it a few years down the road, I'll be happy. But if it doesn't, there's still many great movies (not just from Pixar) to look forward to.